LNA Santé Exceeds FY25 Targets, Eyes €1B by 2027

Key Financial Highlights

LNA Santé, a leading French healthcare provider, reported strong financial results for fiscal year 2025, with like-for-like operational revenues growing by 7.6 percent to reach €879 million. This performance surpassed the company's own guidance of 7 percent. The company has guided for more moderate growth of 5 percent for 2026.

Detailed Performance Overview

Total revenues for FY25 amounted to €913 million, a 13 percent like-for-like increase. This figure includes a significant €34 million from real estate activities, which surged 170 percent year-over-year. The company's core segments also showed solid growth. French nursing homes saw a 3.2 percent revenue increase with a high occupancy rate of 93.3 percent, while French clinics grew by 8.5 percent. The Home Hospitalisation segment was the top performer, expanding by 17.2 percent due to new and expanded capacities.

Market Outlook and Analyst View

For 2026, LNA Santé anticipates a 5 percent like-for-like operational revenue growth. This cautious outlook is attributed to lower increases in regulated tariffs and hospitality service fees, alongside dilutive effects from five newly acquired nursing homes. Despite this, the company maintains its mid-term target of €1 billion in operating revenues by 2027, driven by organic growth and strategic acquisitions. Kepler Cheuvreux reiterates a Buy rating on the stock with a price target of €33, suggesting a 39.8 percent upside.

Summary

LNA Santé demonstrated robust growth in fiscal year 2025, outperforming its targets. While the forecast for 2026 is more conservative due to regulatory and integration factors, the company's long-term strategy remains focused on expansion through its dynamic Home Hospitalisation services and targeted acquisitions to reach its €1 billion revenue goal.

FAQ

Q: Why is LNA Santé's 2026 growth forecast lower than its 2025 results?
A: The lower forecast is due to smaller increases in regulated tariffs, modest hospitality service price hikes, and the dilutive effect of integrating five new nursing homes.

Q: Which business segment performed best for LNA Santé in FY25?
A: The Home Hospitalisation segment was the most dynamic, achieving 17.2 percent like-for-like growth driven by capacity expansion.

Q: What is LNA Santé's mid-term revenue target?
A: The company aims to achieve €1 billion in operating revenues by the year 2027.

Source: Investing.com